According to reports from Spain, the Welshman is poised to sign a new contract that will keep him at the Bernabeu until June 2022 as the La Liga giants seek to tie down the player.
Bale has been linked with a move to Manchester United, with reports suggesting that Jose Mourinho will launch a £100m move for the 27-year-old next summer, but the €500m buy-out clause will surely prove a considerable sticking point for any future bids.
The player has enjoyed a strong start to his fourth season in the Spanish capital, scoring three goals and setting up four in six La Liga appearances.
Former Real Madrid and Wales coach John Toshack recently said his fellow countryman will establish himself as the team's leader within the years to come.
Toshack, who handed Bale his Wales national team debut at the age of 17, told Cadena Ser: "I see a Real Madrid enjoying Bale at the top of his game for two or three years. I believe Bale will win the Ballon d'Or in his career.
"In a few years, he will become the leader [of Real Madrid]."
From his time working with Bale, Toshack said that the player always stood out from the rest of his teammates.
"He was already a different player to the rest," the 67-year-old said. "Now he is very discreet and a great professional. He knows what he has to do and he is a complete player.
"You don't have to raise your hands or shout all the time to be a good leader. There are other ways to motivate your teammates. Gareth has earned the respect of his teammates at Wales."
Beyond Bale, Cristiano Ronaldo is also close to signing a new five-year deal with the club while Toni Kroos recently committed his future until June 2022.Reuse content